[Rev. 11/21/2013 12:58:33
PM--2013]
CHAPTER 645E - MORTGAGE BANKERS
GENERAL PROVISIONS
NRS 645E.010 Definitions.
NRS 645E.020 “Applicant”
defined.
NRS 645E.030 “Commercial
mortgage loan” defined.
NRS 645E.040 “Commercial
property” defined.
NRS 645E.050 “Commissioner”
defined.
NRS 645E.060 “Depository
financial institution” defined.
NRS 645E.070 “Division”
defined.
NRS 645E.080 “Institutional
investor” defined.
NRS 645E.090 “Licensee”
defined.
NRS 645E.100 “Mortgage
banker” defined.
NRS 645E.105 “Nationwide
Mortgage Licensing System and Registry” and “Registry” defined.
NRS 645E.130 Statutory
and common-law rights, remedies and punishments unaffected; limitation on
actions against State and its officers and employees.
EXEMPTIONS
NRS 645E.150 Exemptions
for certain persons and entities.
NRS 645E.160 Certificate
of exemption required for certain persons and entities; application; fee;
automatic expiration; prohibitions; administrative fines; certificate of
exemption for purposes of complying with requirements of Registry;
applicability of chapter to persons filing application for purpose of complying
with requirements of Registry.
NRS 645E.170 Exemptions
for certain loans; application; grounds for granting exemption; powers and
duties of Commissioner.
LICENSING OF MORTGAGE BANKERS
NRS 645E.200 Application
for license; application for branch offices; requirements for issuance of
license; grounds for denial of license to partnership, corporation or
unincorporated association; license for office outside Nevada which conducts
business in Nevada.
NRS 645E.210 Payment
of child support: Submission of certain information by applicant; grounds for
denial of license; duty of Commissioner. [Effective until the date of the
repeal of 42 U.S.C. § 666, the federal law requiring each state to establish
procedures for withholding, suspending and restricting the professional,
occupational and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child support
proceedings.]
NRS 645E.210 Payment
of child support: Submission of certain information by applicant; grounds for
denial of license; duty of Commissioner. [Effective on the date of the repeal
of 42 U.S.C. § 666, the federal law requiring each state to establish
procedures for withholding, suspending and restricting the professional,
occupational and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child support
proceedings and expires by limitation 2 years after that date.]
NRS 645E.220 Posting
of license; restrictions on transfer or assignment of license.
NRS 645E.230 Activities
authorized by license; dual licensure as mortgage banker and mortgage broker.
EXPIRATION AND RENEWAL OF MORTGAGE BANKER’S LICENSE OR
CERTIFICATE OF EXEMPTION; FEES
NRS 645E.280 Annual
expiration of license or certificate of exemption; procedure for renewal; fees.
LICENSING AS AND SUPERVISION OF MORTGAGE AGENTS
NRS 645E.290 Licensure
as mortgage agent required for certain persons who engage in activities as loan
originator or who supervise mortgage agents who engage in such activities.
NRS 645E.291 Supervision
of mortgage agents by mortgage banker; requirements; regulations.
SUPERVISION BY COMMISSIONER
General Provisions
NRS 645E.300 Duties
of Commissioner: Regulations; investigations; annual examinations; periodic and
special audits; hearings; related fees; biennial examinations.
NRS 645E.310 Subpoenas;
oaths; examination of witnesses; penalty; assessment of costs.
NRS 645E.315 Written
notice of address change; approval by Commissioner; administrative fine.
NRS 645E.320 Payment
of statutory assessment by mortgage banker; duty of mortgage banker to
cooperate fully with audits and examinations.
Records and Financial Statements
NRS 645E.350 Records
relating to mortgage transactions, financial condition and trust accounts;
monthly report to Commissioner; accounting procedures for trust accounts;
regulations; records of licensee who operates outside Nevada; mortgage bankers
required to submit reports to Registry.
NRS 645E.360 Annual
financial statement; audit of trust accounts; Commissioner authorized to direct
submission of financial statement; regulations.
NRS 645E.370 Records
of Commissioner: General provisions governing public inspection and
confidentiality.
NRS 645E.375 Records
of Commissioner: Certain records relating to investigation deemed confidential;
certain records relating to disciplinary action deemed public records;
disclosure by Commissioner.
Transfer of Stock
NRS 645E.390 Notification
of certain transfers required; application to Commissioner for approval of
change of control; investigation; waiver.
ESCROW AND TRUST ACCOUNTS
NRS 645E.420 Escrow
account required for fee, salary, deposit or money paid in advance; release
from escrow; exceptions; refunds; penalty.
NRS 645E.430 Trust
account required for money deposited to pay taxes or insurance premiums;
fiduciary duty of mortgage banker; accounting to debtor and Commissioner;
additional duties and prohibitions.
NRS 645E.440 Limitations
on execution or attachment of money in trust account; commingling of money
prohibited.
LOAN PAYMENTS
NRS 645E.470 Limitations
on charging late fee, additional amount of interest or other penalty.
INVESTIGATION OF VIOLATIONS AND UNSAFE PRACTICES; REMEDIAL
ACTION
NRS 645E.620 Authority
of Commissioner when violation is suspected; referral of violations to district
attorney for criminal prosecution; civil action for injunctive relief.
NRS 645E.630 Authority
of Commissioner when unsafe condition or practice is suspected; seizure of
property and assets of mortgage banker; duties of Attorney General.
NRS 645E.640 Persons
entitled to correct unsafe conditions and practices; effect of failure to correct;
receivership and liquidation of assets.
DISCIPLINARY ACTION
NRS 645E.670 Authorized
disciplinary action; grounds for disciplinary action; orders imposing
discipline deemed public records.
NRS 645E.680 Suspension
of license for failure to pay child support or comply with certain subpoenas or
warrants; reinstatement of license. [Effective until 2 years after the date of the
repeal of 42 U.S.C. § 666, the federal law requiring each state to establish
procedures for withholding, suspending and restricting the professional,
occupational and recreational licenses for child support arrearages and for
noncompliance with certain processes relating to paternity or child support
proceedings.]
NRS 645E.690 Duty
of Commissioner to take disciplinary action for certain violations.
NRS 645E.700 Disciplinary
proceedings, fines and penalties not affected by expiration, revocation or voluntary
surrender of license.
NRS 645E.710 Act
or omission of partner, officer or director deemed act or omission of
partnership, corporation or unincorporated association.
HEARINGS; APPEALS
NRS 645E.750 Duty
of Commissioner to provide written notice of disciplinary action or denial of
license; right to administrative hearing; entry of final order; appeals.
MISCELLANEOUS PROVISIONS
NRS 645E.800 Exercise
of jurisdiction over party to civil action; service of summons to confer
jurisdiction.
UNLAWFUL ACTS; PENALTIES
NRS 645E.900 Unlawful
to conduct business of mortgage banker without being licensed or exempt from
licensing.
NRS 645E.910 Unlawful
for foreign corporation, association or business trust to conduct business of
mortgage banker without meeting certain requirements.
NRS 645E.920 Contracts
for mortgage transaction voidable for certain violations.
NRS 645E.930 Civil
action authorized for certain violations.
NRS 645E.950 Penalties
for general violations.
NRS 645E.955 Restitution.
NRS 645E.960 Penalties
for violations relating to escrow or trust accounts.
_________
GENERAL PROVISIONS
NRS 645E.010 Definitions. As
used in this chapter, unless the context otherwise requires, the words and
terms defined in NRS 645E.020 to 645E.105, inclusive, have the meanings ascribed to
them in those sections.
(Added to NRS by 1999, 3744; A 2011, 3625)
NRS 645E.020 “Applicant” defined. “Applicant”
means a person who applies for licensure as a mortgage banker pursuant to this
chapter.
(Added to NRS by 1999, 3744; A 2003, 3558)
NRS 645E.030 “Commercial mortgage loan” defined. “Commercial
mortgage loan” means a loan that:
1. Directly or indirectly, is secured by a
lien on commercial property; and
2. Is created with the consent of the
owner of the commercial property.
(Added to NRS by 1999, 3744)
NRS 645E.040 “Commercial property” defined. “Commercial
property” means any real property which is located in this state and which is
neither used as a dwelling nor upon which a dwelling is constructed or intended
to be constructed. For the purposes of this section, “dwelling” has the meaning
ascribed to it in section 103(v) of the federal Truth in Lending Act, 15 U.S.C.
§ 1602(v).
(Added to NRS by 1999, 3744; A 2011, 3625)
NRS 645E.050 “Commissioner” defined. “Commissioner”
means the Commissioner of Mortgage Lending.
(Added to NRS by 1999, 3744; A 2003, 3558)
NRS 645E.060 “Depository financial institution” defined. “Depository financial institution” means a
bank, savings and loan association, thrift company or credit union.
(Added to NRS by 1999, 3744)
NRS 645E.070 “Division” defined. “Division”
means the Division of Mortgage Lending of the Department of Business and
Industry.
(Added to NRS by 1999, 3744; A 2003, 3558)
NRS 645E.080 “Institutional investor” defined. “Institutional
investor” means a person who, in the regular course of business, makes
commercial mortgage loans of more than $250,000 that are funded exclusively
from one or more of the following sources:
1. The person’s cash, corporate capital or
warehouse credit lines at a depository financial institution or other sources
that are liability items on the person’s financial statements.
2. Correspondent contracts between the
person and another institutional investor or between the person and a
depository financial institution, trust company, profit-sharing or pension
trust, installment lender or insurance company.
3. An affiliate’s cash, corporate capital
or warehouse credit lines at a depository financial institution or other
sources that are liability items on the affiliate’s financial statements for
which the affiliate’s assets are pledged. As used in this subsection,
“affiliate” means another person who, directly or indirectly through one or
more intermediaries, controls, is controlled by or is under common control with
the person who is the institutional investor.
(Added to NRS by 1999, 3745)
NRS 645E.090 “Licensee” defined. “Licensee”
means a person who is licensed as a mortgage banker pursuant to this chapter.
(Added to NRS by 1999, 3745; A 2003, 3558)
NRS 645E.100 “Mortgage banker” defined.
1. “Mortgage banker” means any of the
following:
(a) A person who, directly or indirectly:
(1) Holds himself or herself out as being
able to:
(I) Buy or sell notes secured by
liens on real property; or
(II) Make loans secured by liens on
real property using his or her own money; and
(2) Does not engage in any other act or
transaction described in the definition of “mortgage broker,” as set forth in NRS 645B.0127, unless the person is
also licensed as a mortgage broker pursuant to chapter
645B of NRS.
(b) A person who, directly or indirectly:
(1) Negotiates, originates or makes or
offers to negotiate, originate or make commercial mortgage loans as an agent
for or on behalf of an institutional investor; and
(2) Does not engage in any other act or
transaction described in the definition of “mortgage broker,” as set forth in NRS 645B.0127, unless the person is
also licensed as a mortgage broker pursuant to chapter
645B of NRS.
2. For the purposes of this section, a
person does not make a loan secured by a lien on real property using his or her
own money if any portion of the money that is used to make the loan is provided
by another person who acquires ownership of or a beneficial interest in the
loan.
(Added to NRS by 1999, 3745; A 2003, 3558)
NRS 645E.105 “Nationwide Mortgage Licensing System and Registry” and
“Registry” defined. “Nationwide
Mortgage Licensing System and Registry” or “Registry” has the meaning ascribed
to it in NRS 645B.0128.
(Added to NRS by 2011, 3625)
NRS 645E.130 Statutory and common-law rights, remedies and punishments
unaffected; limitation on actions against State and its officers and employees. The provisions of this chapter do not:
1. Limit any statutory or common-law right
of a person to bring a civil action against a mortgage banker for any act or
omission involved in the transaction of business by or on behalf of the
mortgage banker;
2. Limit the right of the State to punish
a person for the violation of any law, ordinance or regulation; or
3. Establish a basis for a person to bring
a civil action against the State or its officers or employees for any act or
omission in carrying out the provisions of this chapter, including, without
limitation, any act or omission relating to the disclosure of information or
the failure to disclose information pursuant to the provisions of this chapter.
(Added to NRS by 1999, 3745; A 2003, 3558)
EXEMPTIONS
NRS 645E.150 Exemptions for certain persons and entities. Except as otherwise provided in NRS 645E.160, the Secure and Fair Enforcement for
Mortgage Licensing Act of 2008, 12 U.S.C. §§ 5101 et seq., and any regulations
adopted pursuant thereto or other applicable law, the provisions of this
chapter do not apply to:
1. Any person doing business under the
laws of this State, any other state or the United States relating to banks,
savings banks, trust companies, savings and loan associations, industrial loan
companies, credit unions, thrift companies or insurance companies, including,
without limitation, a subsidiary or a holding company of such a bank, company,
association or union.
2. A real estate investment trust, as
defined in 26 U.S.C. § 856, unless the business conducted in this State is not
subject to supervision by the regulatory authority of the other jurisdiction,
in which case licensing pursuant to this chapter is required.
3. An employee benefit plan, as defined in
29 U.S.C. § 1002(3), if the loan is made directly from money in the plan by the
plan’s trustee.
4. An attorney at law rendering services
in the performance of his or her duties as an attorney at law.
5. A real estate broker rendering services
in the performance of his or her duties as a real estate broker.
6. Any person doing any act under an order
of any court.
7. Any one natural person, or husband and
wife, who provides money for investment in commercial loans secured by a lien
on real property, on his or her own account, unless such a person makes a loan
secured by a lien on real property using his or her own money and assigns all
or a part of his or her interest in the loan to another person, other than his
or her spouse or child, within 3 years after the date on which the loan is made
or the deed of trust is recorded, whichever occurs later.
8. A natural person who only offers or
negotiates terms of a residential mortgage loan:
(a) With or on behalf of an immediate family
member of the person; or
(b) Secured by a dwelling that served as the
person’s residence.
9. Agencies of the United States and of
this State and its political subdivisions, including the Public Employees’
Retirement System.
10. A seller of real property who offers
credit secured by a mortgage of the property sold.
11. A nonprofit agency or organization:
(a) Which provides self-help housing for a
borrower who has provided part of the labor to construct the dwelling securing
the borrower’s loan;
(b) Which does not charge or collect origination
fees in connection with the origination of residential mortgage loans;
(c) Which only makes residential mortgage loans
at an interest rate of 0 percent per annum;
(d) Whose volunteers, if any, do not receive
compensation for their services in the construction of a dwelling; and
(e) Which does not profit from the sale of a
dwelling to a borrower.
12. A housing counseling agency approved
by the United States Department of Housing and Urban Development.
(Added to NRS by 1999, 3746; A 2003, 3559; 2007, 959; 2009, 1557;
2011, 3625)
NRS 645E.160 Certificate of exemption required for certain persons and
entities; application; fee; automatic expiration; prohibitions; administrative
fines; certificate of exemption for purposes of complying with requirements of
Registry; applicability of chapter to persons filing application for purpose of
complying with requirements of Registry.
1. Except as otherwise provided in
subsection 2, a person who claims an exemption from the provisions of this
chapter pursuant to subsection 1 of NRS 645E.150
must:
(a) File a written application for a certificate
of exemption with the Office of the Commissioner;
(b) Pay the fee required pursuant to NRS 645E.280;
(c) Include with the written application
satisfactory proof that the person meets the requirements of subsection 1 of NRS 645E.150; and
(d) Provide evidence to the Commissioner that the
person is duly licensed to conduct his or her business, including, if
applicable, the right to transact mortgage loans, and such license is in good
standing pursuant to the laws of this State, any other state or the United
States.
2. The provisions of subsection 1 do not
apply to the extent preempted by federal law.
3. The Commissioner may require a person
who claims an exemption from the provisions of this chapter pursuant to
subsections 2 to 12, inclusive, of NRS 645E.150
to:
(a) File a written application for a certificate
of exemption with the Office of the Commissioner;
(b) Pay the fee required pursuant to NRS 645E.280; and
(c) Include with the written application
satisfactory proof that the person meets the requirements of at least one of
those exemptions.
4. A certificate of exemption expires
automatically if, at any time, the person who claims the exemption no longer
meets the requirements of at least one exemption set forth in the provisions of
NRS 645E.150.
5. If a certificate of exemption expires
automatically pursuant to this section, the person shall not provide any of the
services of a mortgage banker or otherwise engage in, carry on or hold himself
or herself out as engaging in or carrying on the business of a mortgage banker
unless the person applies for and is issued:
(a) A license as a mortgage banker pursuant to
this chapter; or
(b) Another certificate of exemption.
6. The Commissioner may impose upon a
person who is required to apply for a certificate of exemption or who holds a
certificate of exemption an administrative fine of not more than $10,000 for
each violation that he or she commits, if the person:
(a) Has knowingly made or caused to be made to
the Commissioner any false representation of material fact;
(b) Has suppressed or withheld from the
Commissioner any information which the person possesses and which, if submitted
by him or her, would have rendered the person ineligible to hold a certificate
of exemption; or
(c) Has violated any provision of this chapter, a
regulation adopted pursuant to this chapter or an order of the Commissioner
that applies to a person who is required to apply for a certificate of
exemption or who holds a certificate of exemption.
7. A person who is exempt from the
requirements of this chapter may file a written application for a certificate
of exemption with the Office of the Commissioner for the purposes of complying
with the requirements of the Registry or enabling a mortgage agent to comply
with the requirements of the Registry.
8. The Commissioner may require an
applicant or person described in subsection 7 to submit the information or pay
the fee directly to the Division or, if the applicant or person is required to
register or voluntarily registers with the Registry, to the Division through
the Registry.
9. An application filed pursuant to
subsection 7 does not affect the applicability of this chapter to such an
applicant or person.
(Added to NRS by 1999, 3746; A 2003, 3559; 2007, 960; 2009, 1557;
2011, 3626)
NRS 645E.170 Exemptions for certain loans; application; grounds for granting
exemption; powers and duties of Commissioner.
1. A person may apply to the Commissioner
for an exemption from the provisions of this chapter governing the making of a
loan of money only for a loan secured by commercial property.
2. The Commissioner may grant the
exemption if the Commissioner finds that:
(a) The making of the loan would not be
detrimental to the financial condition of the lender or the debtor;
(b) The lender or the debtor has established a
record of sound performance, efficient management, financial responsibility and
integrity;
(c) The making of the loan is likely to increase
the availability of capital for a sector of the state economy; and
(d) The making of the loan is not detrimental to
the public interest.
3. The Commissioner:
(a) May revoke an exemption unless the loan for
which the exemption was granted has been made; and
(b) Shall issue a written statement setting forth
the reasons for his or her decision to grant, deny or revoke an exemption.
(Added to NRS by 1999, 3747; A 2011, 3627)
LICENSING OF MORTGAGE BANKERS
NRS 645E.200 Application for license; application for branch offices;
requirements for issuance of license; grounds for denial of license to
partnership, corporation or unincorporated association; license for office
outside Nevada which conducts business in Nevada.
1. A person who wishes to be licensed as a
mortgage banker must file a written application for a license with the Office
of the Commissioner and pay the fee required pursuant to NRS 645E.280. An application for a license as a
mortgage banker must:
(a) Be verified.
(b) State the name, residence address and
business address of the applicant and the location of each principal office and
branch office at which the mortgage banker will conduct business in this State,
including, without limitation, any office or other place of business located
outside this State from which the mortgage banker will conduct business in this
State and any office or other place of business which the applicant maintains
as a corporate or home office.
(c) State the name under which the applicant will
conduct business as a mortgage banker.
(d) If the applicant is not a natural person,
list the name, residence address and business address of each person who will
have an interest in the mortgage banker as a principal, partner, officer,
director or trustee, specifying the capacity and title of each such person.
(e) Indicate the general plan and character of
the business.
(f) State the length of time the applicant has
been engaged in the business of a mortgage banker.
(g) Include a financial statement of the
applicant.
(h) Include a complete set of fingerprints for
each natural person who is a principal, partner, officer, director or trustee
of the applicant which the Division may forward to the Central Repository for
Nevada Records of Criminal History for submission to the Federal Bureau of
Investigation for its report.
(i) Include any other information required
pursuant to the regulations adopted by the Commissioner or an order of the
Commissioner.
2. If a mortgage banker will conduct
business in this State at one or more branch offices, the mortgage banker must
apply for a license for each such branch office.
3. Except as otherwise provided by law,
the Commissioner shall issue a license to an applicant as a mortgage banker if:
(a) The application is verified by the
Commissioner and complies with the requirements of this chapter, other
applicable law and, if applicable, the Registry; and
(b) The applicant and each general partner,
officer or director of the applicant, if the applicant is a partnership,
corporation or unincorporated association:
(1) Has demonstrated financial
responsibility, character and general fitness so as to command the confidence
of the community and warrant a determination that the applicant will operate
honestly, fairly and efficiently for the purposes of this chapter. For the
purposes of this subparagraph, the factors considered in determining whether a
person has demonstrated financial responsibility include, without limitation:
(I) Whether the person’s personal
credit history indicates any adverse material items, including, without
limitation, liens, judgments, disciplinary action, bankruptcies, foreclosures
or failures to comply with court-approved payment plans;
(II) The circumstances surrounding
any adverse material items in the person’s personal credit history; and
(III) Any instance of fraud,
misrepresentation, dishonest business practices, the mishandling of trust funds
or other types of comparable behavior.
(2) Has not been convicted of, or entered
or agreed to enter a plea of guilty or nolo contendere to, a felony in a
domestic, foreign or military court within the 7 years immediately preceding
the date of the application, or at any time if such felony involved an act of
fraud, dishonesty or a breach of trust, moral turpitude or money laundering.
(3) Has not made a false statement of
material fact on the application.
(4) Has never had a license or
registration as a mortgage agent, mortgage banker, mortgage broker or
residential mortgage loan originator revoked in this State or any other
jurisdiction or had a financial services license revoked within the immediately
preceding 10 years.
(5) Has not violated any provision of this
chapter or chapter 645B of NRS, a
regulation adopted pursuant thereto or an order of the Commissioner.
4. If an applicant is a partnership,
corporation or unincorporated association, the Commissioner may refuse to issue
a license to the applicant if any member of the partnership or any officer or
director of the corporation or unincorporated association has committed any act
or omission that would be cause for refusing to issue a license to a natural
person.
5. A person may apply for a license for an
office or other place of business located outside this State from which the
applicant will conduct business in this State if the applicant or a subsidiary
or affiliate of the applicant has a license issued pursuant to this chapter for
an office or other place of business located in this State and if the applicant
submits with the application for a license a statement signed by the applicant
which states that the applicant agrees to:
(a) Make available at a location within this
State the books, accounts, papers, records and files of the office or place of
business located outside this State to the Commissioner or a representative of
the Commissioner; or
(b) Pay the reasonable expenses for travel, meals
and lodging of the Commissioner or a representative of the Commissioner
incurred during any investigation or examination made at the office or place of
business located outside this State.
Ê The
applicant must be allowed to choose between paragraph (a) or (b) in complying
with the provisions of this subsection.
(Added to NRS by 1999, 3748; A 2001, 2045; 2003, 2726, 3560; 2011, 3627)
NRS 645E.210 Payment of child support: Submission of certain information by
applicant; grounds for denial of license; duty of Commissioner. [Effective
until the date of the repeal of 42 U.S.C. § 666, the federal law requiring each
state to establish procedures for withholding, suspending and restricting the
professional, occupational and recreational licenses for child support
arrearages and for noncompliance with certain processes relating to paternity
or child support proceedings.]
1. In addition to any other requirements
set forth in this chapter:
(a) A natural person who applies for the issuance
of a license as a mortgage banker shall include the social security number of
the applicant in the application submitted to the Commissioner.
(b) A natural person who applies for the issuance
or renewal of a license as a mortgage banker shall submit to the Commissioner
the statement prescribed by the Division of Welfare and Supportive Services of
the Department of Health and Human Services pursuant to NRS 425.520. The statement must be
completed and signed by the applicant.
2. The Commissioner shall include the
statement required pursuant to subsection 1 in:
(a) The application or any other forms that must
be submitted for the issuance or renewal of the license; or
(b) A separate form prescribed by the
Commissioner.
3. The Commissioner shall not issue or
renew a license as a mortgage banker if the applicant is a natural person who:
(a) Fails to submit the statement required
pursuant to subsection 1; or
(b) Indicates on the statement submitted pursuant
to subsection 1 that the applicant is subject to a court order for the support
of a child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the repayment
of the amount owed pursuant to the order.
4. If an applicant indicates on the
statement submitted pursuant to subsection 1 that the applicant is subject to a
court order for the support of a child and is not in compliance with the order
or a plan approved by the district attorney or other public agency enforcing
the order for the repayment of the amount owed pursuant to the order, the
Commissioner shall advise the applicant to contact the district attorney or
other public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.
(Added to NRS by 1999, 3750; A 2003, 3562; 2005, 2791, 2810, 2817)
NRS 645E.210 Payment of child support:
Submission of certain information by applicant; grounds for denial of license;
duty of Commissioner. [Effective on the date of the repeal of 42 U.S.C. § 666,
the federal law requiring each state to establish procedures for withholding,
suspending and restricting the professional, occupational and recreational
licenses for child support arrearages and for noncompliance with certain
processes relating to paternity or child support proceedings and expires by
limitation 2 years after that date.]
1. In addition to any other requirements
set forth in this chapter, a natural person who applies for the issuance or
renewal of a license as a mortgage banker shall submit to the Commissioner the
statement prescribed by the Division of Welfare and Supportive Services of the
Department of Health and Human Services pursuant to NRS 425.520. The statement must be
completed and signed by the applicant.
2. The Commissioner shall include the
statement required pursuant to subsection 1 in:
(a) The application or any other forms that must
be submitted for the issuance or renewal of the license; or
(b) A separate form prescribed by the
Commissioner.
3. The Commissioner shall not issue or
renew a license as a mortgage banker if the applicant is a natural person who:
(a) Fails to submit the statement required
pursuant to subsection 1; or
(b) Indicates on the statement submitted pursuant
to subsection 1 that the applicant is subject to a court order for the support
of a child and is not in compliance with the order or a plan approved by the
district attorney or other public agency enforcing the order for the repayment
of the amount owed pursuant to the order.
4. If an applicant indicates on the statement
submitted pursuant to subsection 1 that the applicant is subject to a court
order for the support of a child and is not in compliance with the order or a
plan approved by the district attorney or other public agency enforcing the
order for the repayment of the amount owed pursuant to the order, the
Commissioner shall advise the applicant to contact the district attorney or
other public agency enforcing the order to determine the actions that the
applicant may take to satisfy the arrearage.
(Added to NRS by 1999, 3750; A 2003, 3562; 2005, 2791, 2810, 2817,
effective on the date of the repeal of 42 U.S.C. § 666, the federal law
requiring each state to establish procedures for withholding, suspending and
restricting the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating to
paternity or child support proceedings)
NRS 645E.220 Posting of license; restrictions on transfer or assignment of
license.
1. A mortgage banker shall post each
license in a conspicuous place in the office for which the license has been
issued.
2. A mortgage banker may not transfer or
assign a license to another person, unless the Commissioner gives written
approval.
(Added to NRS by 1999, 3751; A 2003, 3562)
NRS 645E.230 Activities authorized by license; dual licensure as mortgage
banker and mortgage broker.
1. A license entitles a licensee to engage
only in the activities authorized by this chapter.
2. The provisions of this chapter do not
prohibit a licensee from:
(a) Holding a license as a mortgage broker
pursuant to chapter 645B of NRS; or
(b) Conducting the business of a mortgage banker
and the business of a mortgage broker in the same office or place of business.
(Added to NRS by 1999, 3750; A 2003, 3562)
EXPIRATION AND RENEWAL OF MORTGAGE BANKER’S LICENSE OR
CERTIFICATE OF EXEMPTION; FEES
NRS 645E.280 Annual expiration of license or certificate of exemption;
procedure for renewal; fees.
1. A license issued to a mortgage banker
pursuant to this chapter expires each year on December 31, unless it is
renewed. To renew a license, the licensee must submit to the Commissioner on or
after November 1 and on or before December 31 of each year, or on a date
otherwise specified by the Commissioner by regulation:
(a) An application for renewal that complies with
the requirements of this chapter;
(b) The fee required to renew the license
pursuant to this section; and
(c) All information required by the Commissioner
or, if applicable, required by the Registry to complete the renewal.
2. If the licensee fails to submit any
item required pursuant to subsection 1 to the Commissioner on or after November
1 and on or before December 31 of any year, unless a different date is
specified by the Commissioner by regulation, the license is cancelled as of
December 31 of that year. The Commissioner may reinstate a cancelled license if
the licensee submits to the Commissioner on or before February 28 of the
following year:
(a) An application for renewal that complies with
the requirements of this chapter;
(b) The fee required to renew the license
pursuant to this section;
(c) Except as otherwise provided in this section,
a reinstatement fee of not more than $200; and
(d) All information required to complete the
reinstatement.
3. Except as otherwise provided in NRS 645E.160, a certificate of exemption issued
pursuant to this chapter expires each year on December 31, unless it is
renewed. To renew a certificate of exemption, a person must submit to the
Commissioner on or after November 1 and on or before December 31 of each year,
or on a date otherwise specified by the Commissioner by regulation:
(a) An application for renewal that complies with
the requirements of this chapter; and
(b) The fee required to renew the certificate of
exemption.
4. If the person fails to submit any item
required pursuant to subsection 3 to the Commissioner on or after November 1
and on or before December 31 of any year, unless a different date is specified
by the Commissioner by regulation, the certificate of exemption is cancelled.
Except as otherwise provided in NRS 645E.160, the
Commissioner may reinstate a cancelled certificate of exemption if the person
submits to the Commissioner on or before February 28 of the following year:
(a) An application for renewal that complies with
the requirements of this chapter;
(b) The fee required to renew the certificate of
exemption; and
(c) Except as otherwise provided in this section,
a reinstatement fee of not more than $100.
5. Except as otherwise provided in this
section, a person must pay the following fees to apply for, to be issued or to
renew a license as a mortgage banker pursuant to this chapter:
(a) To file an original application for a
license, not more than $1,500 for the principal office and not more than $40
for each branch office. The person must also pay such additional expenses
incurred in the process of investigation as the Commissioner deems necessary.
(b) To be issued a license, not more than $1,000
for the principal office and not more than $60 for each branch office.
(c) To renew a license, not more than $500 for
the principal office and not more than $100 for each branch office.
6. Except as otherwise provided in this
section, a person must pay the following fees to apply for or to renew a
certificate of exemption pursuant to this chapter:
(a) To file an application for a certificate of
exemption, not more than $200.
(b) To renew a certificate of exemption, not more
than $100.
7. To be issued a duplicate copy of any
license or certificate of exemption, a person must make a satisfactory showing
of its loss and pay a fee of not more than $10.
8. Except as otherwise provided in this
chapter, all fees received pursuant to this chapter are in addition to any fee
required to be paid to the Registry and must be deposited in the Account for
Mortgage Lending created by NRS 645F.270.
9. The Commissioner may, by regulation,
adjust any fee set forth in this section if the Commissioner determines that
such an adjustment is necessary for the Commissioner to carry out his or her
duties pursuant to this chapter. The amount of any adjustment in a fee pursuant
to this subsection must not exceed the amount determined to be necessary for
the Commissioner to carry out his or her duties pursuant to this chapter.
10. The Commissioner may require a
licensee to submit an item or pay a fee required by this section directly to
the Division or, if the licensee is required to register or voluntarily
registers with the Registry, to the Division through the Registry.
(Added to NRS by 1999, 3749; A 2003, 3230, 3562; 2003,
20th Special Session, 265; 2007, 961; 2011, 3629)
LICENSING AS AND SUPERVISION OF MORTGAGE AGENTS
NRS 645E.290 Licensure as mortgage agent required for certain persons who
engage in activities as loan originator or who supervise mortgage agents who
engage in such activities.
1. Any person licensed as a mortgage
banker under this chapter and who engages in activities as a loan originator or
who supervises a mortgage agent who engages in activities as a loan originator,
and any employee or independent contractor of a mortgage banker who engages in
activities as a loan originator, must be licensed as a mortgage agent pursuant
to the provisions of NRS 645B.400 to 645B.460, inclusive.
2. As used in this section:
(a) “Clerical or ministerial tasks” means
communication with a person to obtain, and the receipt, collection and
distribution of, information necessary for the processing or underwriting of a
loan.
(b) “Loan originator” means a natural person who
takes a loan application or offers or negotiates terms of a loan for
compensation or other pecuniary gain. The term does not include:
(1) A person who performs clerical or
ministerial tasks as an employee at the direction of and subject to the
supervision and instruction of a person licensed or exempt from licensing under
this chapter, unless the person who performs such clerical or ministerial tasks
is an independent contractor; or
(2) A person solely involved in extensions
of credit relating to timeshare plans, as that term is defined in 11 U.S.C. §
101(53D).
(Added to NRS by 2009, 2687;
A 2011,
3631)
NRS 645E.291 Supervision of mortgage agents by mortgage banker; requirements;
regulations.
1. A mortgage banker shall exercise
reasonable supervision and control over the activities of his or her mortgage
agents and must also be licensed as a mortgage agent if required pursuant to NRS 645E.290. Such reasonable supervision and control
must include, as appropriate:
(a) The establishment of written policies and
procedures for the mortgage agents;
(b) The establishment of a system to review,
oversee and inspect the activities of the mortgage agents, including, without
limitation:
(1) Transactions handled by the mortgage
agents pursuant to this chapter;
(2) Communications between the mortgage
agents and a party to such a transaction;
(3) Documents prepared by the mortgage
agents that may have a material effect upon the rights or obligations of a
party to such a transaction; and
(4) The handling by the mortgage agents of
any fee, deposit or money paid to the mortgage banker or the mortgage agents or
held in trust by the mortgage banker or the mortgage agents pursuant to this
chapter; and
(c) The establishment of a system of reporting to
the Division of any fraudulent activity engaged in by any of the mortgage
agents.
2. The Commissioner shall allow a mortgage
banker to take into consideration the total number of mortgage agents
associated with or employed by the mortgage banker when the mortgage banker
determines the form and extent of the policies and procedures for those
mortgage agents and the system to review, oversee and inspect the activities of
those mortgage agents.
3. The Commissioner may adopt regulations
prescribing standards for determining whether a mortgage banker has exercised
reasonable supervision and control over the activities of a mortgage agent
pursuant to this section.
(Added to NRS by 2009, 2687;
A 2011,
3631; 2013,
120)
SUPERVISION BY COMMISSIONER
General Provisions
NRS 645E.300 Duties of Commissioner: Regulations; investigations; annual
examinations; periodic and special audits; hearings; related fees; biennial
examinations.
1. Subject to the administrative control
of the Director of the Department of Business and Industry, the Commissioner
shall exercise general supervision and control over mortgage bankers doing
business in this State.
2. In addition to the other duties imposed
upon him or her by law, the Commissioner shall:
(a) Adopt regulations establishing reasonable
limitations and guidelines on loans made by a mortgage banker to a director,
officer or employee of the mortgage banker.
(b) Adopt any other regulations that are
necessary to carry out the provisions of this chapter, except as to loan fees.
(c) Conduct such investigations as may be
necessary to determine whether any person has violated any provision of this
chapter, a regulation adopted pursuant to this chapter or an order of the
Commissioner.
(d) Except as otherwise provided in subsection 4,
conduct an annual examination of each mortgage banker doing business in this
State.
(e) Conduct such other examinations, periodic or
special audits, investigations and hearings as may be necessary for the
efficient administration of the laws of this State regarding mortgage bankers.
(f) Classify as confidential certain records and
information obtained by the Division when those matters are obtained from a
governmental agency upon the express condition that they remain confidential.
This paragraph does not limit examination by:
(1) The Legislative Auditor; or
(2) The Department of Taxation if
necessary to carry out the provisions of chapter
363A of NRS.
(g) Conduct such examinations and investigations
as are necessary to ensure that mortgage bankers meet the requirements of this
chapter for obtaining a license, both at the time of the application for a
license and thereafter on a continuing basis.
3. For each special audit, investigation
or examination, a mortgage banker shall pay a fee based on the rate established
pursuant to NRS 645F.280.
4. The Commissioner may conduct biennial
examinations of a mortgage banker instead of annual examinations, as described
in paragraph (d) of subsection 2, if the mortgage banker:
(a) Received a rating in the last annual
examination that meets a threshold determined by the Commissioner;
(b) Has not had any adverse change in financial
condition since the last annual examination, as shown by financial statements
of the mortgage banker; and
(c) Has not had any complaints received by the
Division that resulted in any administrative action by the Division.
(Added to NRS by 1999, 3751; A 2003, 3564; 2003,
20th Special Session, 223; 2007, 962)
NRS 645E.310 Subpoenas; oaths; examination of witnesses; penalty; assessment
of costs.
1. In the conduct of any examination,
periodic or special audit, investigation or hearing, the Commissioner may:
(a) Compel the attendance of any person by
subpoena.
(b) Compel the production of any document by
subpoena.
(c) Administer oaths.
(d) Examine any person under oath concerning the
business and conduct of affairs of any person subject to the provisions of this
chapter and, in connection therewith, require the production of any books,
records or papers relevant to the inquiry.
2. Any person subpoenaed under the
provisions of this section who willfully refuses or willfully neglects to
appear at the time and place named in the subpoena or to produce books, records
or papers required by the Commissioner, or who refuses to be sworn or answer as
a witness, is guilty of a misdemeanor.
3. In addition to the authority to recover
attorney’s fees and costs pursuant to any other statute, the Commissioner may
assess against and collect from a person all costs, including, without
limitation, reasonable attorney’s fees, that are attributable to any
examination, periodic or special audit, investigation or hearing that is
conducted to examine or investigate the conduct, activities or business of the
person pursuant to this chapter.
(Added to NRS by 1999, 3752; A 2003, 3473; 2009, 1558)
NRS 645E.315 Written notice of address change; approval by Commissioner;
administrative fine.
1. A licensee who wishes to change the
address of an office or other place of business for which the licensee has a
license pursuant to this chapter must, at least 10 days before changing the
address, give written notice of the proposed change to the Commissioner.
2. Upon receipt of the proposed change of
address pursuant to subsection 1, the Commissioner shall provide written
approval of the change and the date of the approval.
3. If a licensee fails to provide notice
as required pursuant to subsection 1, the Commissioner may impose an
administrative fine in an amount not to exceed $500.
(Added to NRS by 2001, 2044)
NRS 645E.320 Payment of statutory assessment by mortgage banker; duty of
mortgage banker to cooperate fully with audits and examinations. Each mortgage banker shall pay the assessment
levied pursuant to NRS 645F.180 and
cooperate fully with the audits and examinations performed pursuant thereto.
(Added to NRS by 1999, 3752; A 2003, 3564)
Records and Financial Statements
NRS 645E.350 Records relating to mortgage transactions, financial condition
and trust accounts; monthly report to Commissioner; accounting procedures for
trust accounts; regulations; records of licensee who operates outside Nevada;
mortgage bankers required to submit reports to Registry.
1. Each mortgage banker shall keep and
maintain at all times at each location where the mortgage banker conducts
business in this State complete and suitable records of all mortgage
transactions made by the mortgage banker at that location. Each mortgage banker
shall also keep and maintain at all times at each such location all original
books, papers and data, or copies thereof, clearly reflecting the financial
condition of the business of the mortgage banker.
2. Each mortgage banker shall submit to
the Commissioner each month a report of the mortgage banker’s activity for the
previous month. The report must:
(a) Specify the volume of loans made by the
mortgage banker for the month or state that no loans were made in that month;
(b) Include any information required pursuant to
the regulations adopted by the Commissioner; and
(c) Be submitted to the Commissioner by the 15th
day of the month following the month for which the report is made.
3. The Commissioner may adopt regulations
prescribing accounting procedures for mortgage bankers handling trust accounts
and the requirements for keeping records relating to such accounts.
4. A licensee who operates outside this
State an office or other place of business which is licensed pursuant to this
chapter shall:
(a) Make available at a location within this
State the books, accounts, papers, records and files of the office or place of
business located outside this State to the Commissioner or a representative of
the Commissioner; or
(b) Pay the reasonable expenses for travel, meals
and lodging of the Commissioner or a representative of the Commissioner
incurred during any investigation or examination made at the office or place of
business located outside this State.
Ê The licensee
must be allowed to choose between paragraph (a) or (b) in complying with the
provisions of this subsection.
5. Each mortgage banker who is required to
register or voluntarily registers with the Registry shall submit to the
Registry and the Commissioner a report of condition or any other report
required by the Registry in the form and at the time required by the Registry.
(Added to NRS by 1999, 3752; A 2001, 2046; 2003, 3564; 2011, 3632)
NRS 645E.360 Annual financial statement; audit of trust accounts;
Commissioner authorized to direct submission of financial statement;
regulations.
1. Except as otherwise provided in this
section, not later than 90 days after the last day of each fiscal year for a
mortgage banker, the mortgage banker shall submit to the Commissioner a
financial statement that:
(a) Is dated not earlier than the last day of the
fiscal year; and
(b) Has been prepared from the books and records
of the mortgage banker by an independent certified public accountant who holds
a license to practice in this State or in any other state that has not been
revoked or suspended.
2. Unless otherwise prohibited by the
Registry, the Commissioner may grant a reasonable extension for the submission
of a financial statement pursuant to this section if a mortgage banker requests
such an extension before the date on which the financial statement is due.
3. If a mortgage banker maintains any
accounts described in NRS 645E.430, the financial
statement submitted pursuant to this section must be audited.
4. The Commissioner may require the
financial statement to be submitted directly to the Commissioner or, if the
mortgage banker that submits the financial statement is required to register or
voluntarily registers with the Registry, to the Division through the Registry.
5. The Commissioner shall adopt
regulations prescribing the scope of an audit conducted pursuant to subsection
3.
(Added to NRS by 1999, 3753; A 2003, 3565; 2007, 963; 2011, 3633)
NRS 645E.370 Records of Commissioner: General provisions governing public
inspection and confidentiality.
1. Except as otherwise provided in this
section or by specific statute, all papers, documents, reports and other
written instruments filed with the Commissioner pursuant to this chapter are
open to public inspection.
2. The Commissioner may withhold from
public inspection or refuse to disclose to a person, for such time as the
Commissioner considers necessary, any information that, in the Commissioner’s
judgment, would:
(a) Impede or otherwise interfere with an
investigation that is currently pending against a mortgage banker; or
(b) Have an undesirable effect on the welfare of
the public or the welfare of any mortgage banker.
(Added to NRS by 1999, 3753; A 2003, 3565)
NRS 645E.375 Records of Commissioner: Certain records relating to
investigation deemed confidential; certain records relating to disciplinary
action deemed public records; disclosure by Commissioner.
1. Except as otherwise provided in this
section and NRS 239.0115, a complaint
filed with the Commissioner, all documents and other information filed with the
complaint and all documents and other information compiled as a result of an
investigation conducted to determine whether to initiate disciplinary action
are confidential.
2. The complaint or other document filed
by the Commissioner to initiate disciplinary action and all documents and
information considered by the Commissioner when determining whether to impose
discipline are public records.
3. The Commissioner may disclose any
document or information made confidential under subsection 1 to the party
against whom the complaint is made, a licensing board or agency, the Registry
or any other governmental agency, including, without limitation, a law
enforcement agency.
(Added to NRS by 2003, 3472; A 2007, 2148; 2011, 3633)
Transfer of Stock
NRS 645E.390 Notification of certain transfers required; application to
Commissioner for approval of change of control; investigation; waiver.
1. The Commissioner must be notified of a
transfer of 10 percent or more of the outstanding voting stock of a mortgage
banker and must approve a transfer of voting stock of a mortgage banker which
constitutes a change of control.
2. The person who acquires stock resulting
in a change of control of the mortgage banker shall apply to the Commissioner
for approval of the transfer. The application must contain information which
shows that the requirements of this chapter and of the Registry, if applicable,
for obtaining a license will be satisfied after the change of control. Except
as otherwise provided in subsection 3, the Commissioner shall conduct an
investigation to determine whether those requirements will be satisfied. If,
after the investigation, the Commissioner denies the application, the
Commissioner may forbid the applicant from participating in the business of the
mortgage banker.
3. A mortgage banker may submit a written
request to the Commissioner to waive an investigation pursuant to subsection 2.
The Commissioner may grant a waiver if the applicant has undergone a similar
investigation by a state or federal agency in connection with the licensing of
or his or her employment with a financial institution.
4. As used in this section, “change of
control” means:
(a) A transfer of voting stock which results in
giving a person, directly or indirectly, the power to direct the management and
policy of a mortgage banker; or
(b) A transfer of at least 25 percent of the
outstanding voting stock of a mortgage banker.
(Added to NRS by 1999, 3751; A 2003, 3565; 2011, 3634)
ESCROW AND TRUST ACCOUNTS
NRS 645E.420 Escrow account required for fee, salary, deposit or money paid
in advance; release from escrow; exceptions; refunds; penalty.
1. Except as otherwise permitted by law
and as otherwise provided in subsection 3, the amount of any advance fee,
salary, deposit or money paid to any mortgage banker or other person to obtain
a loan secured by a lien on real property must be placed in escrow pending
completion of the loan or a commitment for the loan.
2. The amount held in escrow pursuant to
subsection 1 must be released:
(a) Upon completion of the loan or commitment for
the loan, to the mortgage banker or other person to whom the advance fee,
salary, deposit or money was paid.
(b) If the loan or commitment for the loan fails,
to the person who made the payment.
3. Advance payments to cover reasonably
estimated costs paid to third persons are excluded from the provisions of
subsections 1 and 2 if the person making them first signs a written agreement
which specifies the estimated costs by item and the estimated aggregate cost,
and which recites that money advanced for costs will not be refunded. If an
itemized service is not performed and the estimated cost thereof is not
refunded, the recipient of the advance payment is subject to the penalties
provided in NRS 645E.960.
(Added to NRS by 1999, 3753; A 2003, 3566; 2011, 3634)
NRS 645E.430 Trust account required for money deposited to pay taxes or
insurance premiums; fiduciary duty of mortgage banker; accounting to debtor and
Commissioner; additional duties and prohibitions.
1. All money paid to a mortgage banker for
payment of taxes or insurance premiums on real property which secures any loan
made by the mortgage banker must be deposited in an insured depository
financial institution and kept separate, distinct and apart from money
belonging to the mortgage banker. Such money, when deposited, is to be
designated as an “impound trust account” or under some other appropriate name
indicating that the accounts are not the money of the mortgage banker.
2. The mortgage banker has a fiduciary
duty to each debtor with respect to the money in an impound trust account.
3. The mortgage banker shall, upon
reasonable notice, account to any debtor whose real property secures a loan
made by the mortgage banker for any money which that person has paid to the
mortgage banker for the payment of taxes or insurance premiums on the real
property.
4. The mortgage banker shall, upon
reasonable notice, account to the Commissioner for all money in an impound
trust account.
5. A mortgage banker shall:
(a) Require contributions to an impound trust
account in an amount reasonably necessary to pay the obligations as they become
due.
(b) Within 30 days after the completion of the
annual review of an impound trust account, notify the debtor:
(1) Of the amount by which the
contributions exceed the amount reasonably necessary to pay the annual
obligations due from the account; and
(2) That the debtor may specify the
disposition of the excess money within 20 days after receipt of the notice. If
the debtor fails to specify such a disposition within that time, the mortgage
banker shall maintain the excess money in the account.
Ê This
subsection does not prohibit a mortgage banker from requiring additional
amounts to be paid into an impound trust account to recover a deficiency that
exists in the account.
6. A mortgage banker shall not make
payments from an impound trust account in a manner that causes a policy of
insurance to be cancelled or causes property taxes or similar payments to
become delinquent.
(Added to NRS by 1999, 3754; A 2003, 3566)
NRS 645E.440 Limitations on execution or attachment of money in trust
account; commingling of money prohibited.
1. Money in an impound trust account is
not subject to execution or attachment on any claim against the mortgage
banker.
2. It is unlawful for a mortgage banker
knowingly to keep or cause to be kept any money in a depository financial
institution under the heading of “impound trust account” or any other name
designating such money as belonging to the debtors of the mortgage banker,
unless the money has been paid to the mortgage banker by a debtor pursuant to NRS 645E.430 and is being held in trust by the
mortgage banker pursuant to the provisions of that section.
(Added to NRS by 1999, 3754; A 2003, 3567)
LOAN PAYMENTS
NRS 645E.470 Limitations on charging late fee, additional amount of interest
or other penalty.
1. If a person is required to make a
payment to a mortgage banker pursuant to the terms of a loan secured by a lien
on real property, the mortgage banker may not charge the person a late fee, an
additional amount of interest or any other penalty in connection with that
payment if the payment is delivered to the mortgage banker before 5 p.m. on:
(a) The day that the payment is due pursuant to
the terms of the loan, if an office of the mortgage banker is open to customers
until 5 p.m. on that day; or
(b) The next day that an office of the mortgage
banker is open to customers until 5 p.m., if the provisions of paragraph (a) do
not otherwise apply.
2. A person and a mortgage banker may not
agree to alter or waive the provisions of this section by contract or other
agreement, and any such contract or agreement is void and must not be given
effect to the extent that it violates the provisions of this section.
(Added to NRS by 1999, 3755; A 2003, 3567)
INVESTIGATION OF VIOLATIONS AND UNSAFE PRACTICES; REMEDIAL
ACTION
NRS 645E.620 Authority of Commissioner when violation is suspected; referral
of violations to district attorney for criminal prosecution; civil action for
injunctive relief.
1. Whether or not a complaint has been
filed, the Commissioner may investigate a mortgage banker or other person if,
for any reason, it appears that:
(a) The mortgage banker is conducting business in
an unsafe and injurious manner or in violation of any provision of this
chapter, a regulation adopted pursuant to this chapter or an order of the
Commissioner;
(b) The person is offering or providing any of
the services of a mortgage banker or otherwise engaging in, carrying on or
holding himself or herself out as engaging in or carrying on the business of a
mortgage banker without being licensed or exempt from licensing pursuant to the
provisions of this chapter; or
(c) The person is violating any other provision
of this chapter, a regulation adopted pursuant to this chapter or an order of
the Commissioner.
2. If, upon investigation, the
Commissioner has reasonable cause to believe that the mortgage banker or other
person has engaged in any conduct or committed any violation described in subsection
1, the Commissioner may:
(a) Advise the district attorney of the county in
which the conduct or violation occurred, and the district attorney shall cause
the appropriate legal action to be taken against the mortgage banker or other
person to enjoin the conduct or the operation of the business or prosecute the
violation; and
(b) Bring a civil action to:
(1) Enjoin the mortgage banker or other
person from engaging in the conduct, operating the business or committing the
violation; and
(2) Enjoin any other person who has
encouraged, facilitated, aided or participated in the conduct, the operation of
the business or the commission of the violation, or who is likely to engage in
such acts, from engaging in or continuing to engage in such acts.
3. If the Commissioner brings a civil
action pursuant to subsection 2, the district court of any county of this State
is hereby vested with the jurisdiction in equity to enjoin the conduct, the
operation of the business or the commission of the violation and may grant any
injunctions that are necessary to prevent and restrain the conduct, the
operation of the business or the commission of the violation. During the
pendency of the proceedings before the district court:
(a) The court may issue any temporary restraining
orders as may appear to be just and proper;
(b) The findings of the Commissioner shall be
deemed to be prima facie evidence and sufficient grounds, in the discretion of
the court, for the ex parte issuance of a temporary restraining order; and
(c) The Commissioner may apply for and on due
showing is entitled to have issued the court’s subpoena requiring forthwith the
appearance of any person to:
(1) Produce any documents, books and
records as may appear necessary for the hearing of the petition; and
(2) Testify and give evidence concerning
the conduct complained of in the petition.
(Added to NRS by 1999, 3755; A 2003, 3568)
NRS 645E.630 Authority of Commissioner when unsafe condition or practice is
suspected; seizure of property and assets of mortgage banker; duties of
Attorney General.
1. In addition to any other action that is
permitted pursuant to this chapter, if the Commissioner has reasonable cause to
believe that:
(a) The assets or capital of a mortgage banker
are impaired; or
(b) A mortgage banker is conducting business in
an unsafe and injurious manner that may result in danger to the public,
Ê the
Commissioner may immediately take possession of all the property, business and
assets of the mortgage banker that are located in this state and retain
possession of them pending further proceedings provided for in this chapter.
2. If the licensee, the board of directors
or any officer or person in charge of the offices of the mortgage banker
refuses to permit the Commissioner to take possession of the property of the
mortgage banker pursuant to subsection 1:
(a) The Commissioner shall notify the Attorney
General; and
(b) The Attorney General shall immediately bring
such proceedings as may be necessary to place the Commissioner in immediate
possession of the property of the mortgage banker.
3. If the Commissioner takes possession of
the property of the mortgage banker, the Commissioner shall:
(a) Make or have made an inventory of the assets
and known liabilities of the mortgage banker; and
(b) File one copy of the inventory in the office
of the Commissioner and one copy in the office of the clerk of the district
court of the county in which the principal office of the mortgage banker is
located and shall mail one copy to each stockholder, partner, officer, director
or associate of the mortgage banker at his or her last known address.
4. The clerk of the court with which the
copy of the inventory is filed shall file it as any other case or proceeding
pending in the court and shall give it a docket number.
(Added to NRS by 1999, 3756; A 2003, 3569)
NRS 645E.640 Persons entitled to correct unsafe conditions and practices;
effect of failure to correct; receivership and liquidation of assets.
1. If the Commissioner takes possession of
the property of a mortgage banker pursuant to NRS
645E.630, the licensee, officers, directors, partners, associates or
stockholders of the mortgage banker may, within 60 days after the date on which
the Commissioner takes possession of the property, make good any deficit in the
assets or capital of the mortgage banker or remedy any unsafe and injurious
conditions or practices of the mortgage banker.
2. At the expiration of the 60-day period,
if the deficiency in assets or capital has not been made good or the unsafe and
injurious conditions or practices remedied, the Commissioner may apply to the
court to be appointed receiver and proceed to liquidate the assets of the
mortgage banker which are located in this State in the same manner as now
provided by law for liquidation of a private corporation in receivership.
3. No other person may be appointed
receiver by any court without first giving the Commissioner ample notice of his
or her application.
4. The inventory made by the Commissioner
and all claims filed by creditors are open at all reasonable times for
inspection, and any action taken by the receiver upon any of the claims is
subject to the approval of the court before which the cause is pending.
5. The expenses of the receiver and
compensation of counsel, as well as all expenditures required in the
liquidation proceedings, must be fixed by the Commissioner subject to the
approval of the court and, upon certification of the Commissioner, must be paid
out of the money in his or her hands as the receiver.
(Added to NRS by 1999, 3757; A 2003, 3569)
DISCIPLINARY ACTION
NRS 645E.670 Authorized disciplinary action; grounds for disciplinary action;
orders imposing discipline deemed public records.
1. For each violation committed by an
applicant, whether or not the applicant is issued a license, the Commissioner
may impose upon the applicant an administrative fine of not more than $25,000
if the applicant:
(a) Has knowingly made or caused to be made to
the Commissioner any false representation of material fact;
(b) Has suppressed or withheld from the
Commissioner any information which the applicant possesses and which, if
submitted by the applicant, would have rendered the applicant ineligible to be
licensed pursuant to the provisions of this chapter; or
(c) Has violated any provision of this chapter, a
regulation adopted pursuant to this chapter or an order of the Commissioner in
completing and filing his or her application for a license or during the course
of the investigation of his or her application for a license.
2. For each violation committed by a
licensee, the Commissioner may impose upon the licensee an administrative fine of
not more than $25,000, may suspend, revoke or place conditions upon the
license, or may do both, if the licensee, whether or not acting as such:
(a) Is insolvent;
(b) Is grossly negligent or incompetent in
performing any act for which the licensee is required to be licensed pursuant
to the provisions of this chapter;
(c) Does not conduct his or her business in
accordance with law or has violated any provision of this chapter, a regulation
adopted pursuant to this chapter or an order of the Commissioner;
(d) Is in such financial condition that the
licensee cannot continue in business with safety to his or her customers;
(e) Has made a material misrepresentation in
connection with any transaction governed by this chapter;
(f) Has suppressed or withheld from a client any
material facts, data or other information relating to any transaction governed
by the provisions of this chapter which the licensee knew or, by the exercise
of reasonable diligence, should have known;
(g) Has knowingly made or caused to be made to
the Commissioner any false representation of material fact or has suppressed or
withheld from the Commissioner any information which the licensee possesses and
which, if submitted by the licensee, would have rendered the licensee
ineligible to be licensed pursuant to the provisions of this chapter;
(h) Has failed to account to persons interested
for all money received for a trust account;
(i) Has refused to permit an examination by the
Commissioner of his or her books and affairs or has refused or failed, within a
reasonable time, to furnish any information or make any report that may be
required by the Commissioner pursuant to the provisions of this chapter or a
regulation adopted pursuant to this chapter;
(j) Has been convicted of, or entered or agreed
to enter a plea of nolo contendere to, a felony in a domestic, foreign or
military court within the 7 years immediately preceding the date of the
application, or at any time if such felony involved an act of fraud, dishonesty
or a breach of trust, moral turpitude or money laundering;
(k) Has refused or failed to pay, within a
reasonable time, any fees, assessments, costs or expenses that the licensee is
required to pay pursuant to this chapter or a regulation adopted pursuant to
this chapter;
(l) Has failed to pay a tax as required pursuant
to the provisions of chapter 363A of NRS;
(m) Has failed to satisfy a claim made by a
client which has been reduced to judgment;
(n) Has failed to account for or to remit any
money of a client within a reasonable time after a request for an accounting or
remittal;
(o) Has violated NRS 645C.557;
(p) Has commingled the money or other property of
a client with his or her own or has converted the money or property of others
to his or her own use; or
(q) Has engaged in any other conduct constituting
a deceitful, fraudulent or dishonest business practice.
3. An order that imposes discipline and
the findings of fact and conclusions of law supporting that order are public
records.
(Added to NRS by 1999, 3757; A 2003, 2728, 3473; 2003,
20th Special Session, 223; 2009, 1522;
2011, 3634)
NRS 645E.680 Suspension of license for failure to pay child support or comply
with certain subpoenas or warrants; reinstatement of license. [Effective until
2 years after the date of the repeal of 42 U.S.C. § 666, the federal law
requiring each state to establish procedures for withholding, suspending and
restricting the professional, occupational and recreational licenses for child
support arrearages and for noncompliance with certain processes relating to
paternity or child support proceedings.]
1. If the Commissioner receives a copy of
a court order issued pursuant to NRS
425.540 that provides for the suspension of all professional, occupational
and recreational licenses, certificates and permits issued to a person who is
the holder of a license as a mortgage banker, the Commissioner shall deem the
license issued to that person to be suspended at the end of the 30th day after
the date on which the court order was issued unless the Commissioner receives a
letter issued to the holder of the license by the district attorney or other
public agency pursuant to NRS 425.550
stating that the holder of the license has complied with the subpoena or
warrant or has satisfied the arrearage pursuant to NRS 425.560.
2. The Commissioner shall reinstate a
license as a mortgage banker that has been suspended by a district court
pursuant to NRS 425.540 if the
Commissioner receives a letter issued by the district attorney or other public
agency pursuant to NRS 425.550 to the
person whose license was suspended stating that the person whose license was
suspended has complied with the subpoena or warrant or has satisfied the
arrearage pursuant to NRS 425.560.
(Added to NRS by 1999, 3758; A 2003, 3570; 2005, 2810, 2817)
NRS 645E.690 Duty of Commissioner to take disciplinary action for certain
violations.
1. If a person offers or provides any of
the services of a mortgage banker or mortgage agent or otherwise engages in,
carries on or holds himself or herself out as engaging in or carrying on the
business of a mortgage banker or mortgage agent and, at the time:
(a) The person was required to have a license
pursuant to this chapter and the person did not have such a license; or
(b) The person’s license was suspended or revoked
pursuant to this chapter,
Ê the
Commissioner shall impose upon the person an administrative fine of not more
than $50,000 for each violation and, if the person has a license, the
Commissioner may suspend or revoke it.
2. If a mortgage banker violates
subsection 1 of NRS 645E.350 and the mortgage banker
fails, without reasonable cause, to remedy the violation within 20 business
days after being ordered by the Commissioner to do so or within such later time
as prescribed by the Commissioner, or if the Commissioner orders a mortgage
banker to provide information, make a report or permit an examination of his or
her books or affairs pursuant to this chapter and the mortgage banker fails,
without reasonable cause, to comply with the order within 20 business days or
within such later time as prescribed by the Commissioner, the Commissioner
shall:
(a) Impose upon the mortgage banker an
administrative fine of not more than $25,000 for each violation;
(b) Suspend or revoke the license of the mortgage
banker; and
(c) Conduct a hearing to determine whether the
mortgage banker is conducting business in an unsafe and injurious manner that
may result in danger to the public and whether it is necessary for the
Commissioner to take possession of the property of the mortgage banker pursuant
to NRS 645E.630.
(Added to NRS by 2009, 2688;
A 2011,
3636)
NRS 645E.700 Disciplinary proceedings, fines and penalties not affected by
expiration, revocation or voluntary surrender of license. The expiration or revocation of a license of a
mortgage banker by operation of law or by order or decision of the Commissioner
or a court of competent jurisdiction, or the voluntary surrender of a license,
does not:
1. Prohibit the Commissioner from initiating
or continuing an investigation of, or action or disciplinary proceeding
against, the mortgage banker as authorized pursuant to the provisions of this
chapter or the regulations adopted pursuant thereto; or
2. Prevent the imposition or collection of
any fine or penalty authorized pursuant to the provisions of this chapter or
the regulations adopted pursuant thereto against the mortgage banker.
(Added to NRS by 2009, 1556)
NRS 645E.710 Act or omission of partner, officer or director deemed act or
omission of partnership, corporation or unincorporated association. If a person is a partnership, corporation or
unincorporated association, the Commissioner may take any disciplinary action
set forth in this chapter against the person if any member of the partnership
or any officer or director of the corporation or unincorporated association has
committed any act or omission that would be cause for taking such disciplinary
action against a natural person.
(Added to NRS by 1999, 3759)
HEARINGS; APPEALS
NRS 645E.750 Duty of Commissioner to provide written notice of disciplinary
action or denial of license; right to administrative hearing; entry of final
order; appeals.
1. If the Commissioner enters an order
taking any disciplinary action against a person or denying a person’s
application for a license, the Commissioner shall cause a written notice of the
order to be served personally or sent by certified mail or telegram to the
person.
2. Unless a hearing has already been
conducted concerning the matter, the person, upon application, is entitled to a
hearing. If the person does not make such an application within 20 days after
the date of the initial order, the Commissioner shall enter a final order
concerning the matter.
3. A person may appeal a final order of
the Commissioner in accordance with the provisions of chapter 233B of NRS that apply to a contested
case.
(Added to NRS by 1999, 3759; A 2003, 985)
MISCELLANEOUS PROVISIONS
NRS 645E.800 Exercise of jurisdiction over party to civil action; service of
summons to confer jurisdiction.
1. A court of this State may exercise
jurisdiction over a party to a civil action arising under the provisions of
this chapter on any basis not inconsistent with the Constitution of the State
of Nevada or the Constitution of the United States.
2. Personal service of summons upon a
party outside this State is sufficient to confer upon a court of this State
jurisdiction over the party so served if the service is made by delivering a
copy of the summons, together with a copy of the complaint, to the party served
in the manner provided by statute or rule of court for service upon a person of
like kind within this State.
3. In all cases of such service, the
defendant has 40 days, exclusive of the day of service, within which to answer
or plead.
4. This section provides an additional
manner of serving process and does not invalidate any other service.
(Added to NRS by 2009, 748)
UNLAWFUL ACTS; PENALTIES
NRS 645E.900 Unlawful to conduct business of mortgage banker without being
licensed or exempt from licensing. It
is unlawful for any person to offer or provide any of the services of a
mortgage banker or otherwise to engage in, carry on or hold himself or herself
out as engaging in or carrying on the business of a mortgage banker without
first obtaining a license as a mortgage banker pursuant to this chapter, unless
the person:
1. Is exempt from the provisions of this
chapter; and
2. Complies with the requirements for that
exemption.
(Added to NRS by 1999, 3759; A 2003, 3570)
NRS 645E.910 Unlawful for foreign corporation, association or business trust
to conduct business of mortgage banker without meeting certain requirements. It is unlawful for any foreign corporation,
association or business trust to conduct any business as a mortgage banker
within this State, unless it:
1. Qualifies under chapter 80 of NRS; and
2. Complies with the provisions of this
chapter or, if it claims an exemption from the provisions of this chapter,
complies with the requirements for that exemption.
(Added to NRS by 1999, 3759; A 2003, 3570)
NRS 645E.920 Contracts for mortgage transaction voidable for certain
violations. If a person, or any
general partner, director, officer, agent or employee of a person violates the
provisions of NRS 645E.900 or 645E.910, any contracts entered into by that person
for the mortgage transaction are voidable by the other party to the contract.
(Added to NRS by 2009, 747;
A 2009,
2693)
NRS 645E.930 Civil action authorized for certain violations. In addition to any other remedy or penalty, if
a person, or any general partner, director, officer, agent or employee of a
person violates the provisions of NRS 645E.900 or 645E.910, the client may bring a civil action against
the person for:
1. Actual and consequential damages;
2. Punitive damages, which are subject to
the provisions of NRS 42.005;
3. Reasonable attorney’s fees and costs;
and
4. Any other legal or equitable relief
that the court deems appropriate.
(Added to NRS by 2009, 747)
NRS 645E.950 Penalties for general violations. Except
as otherwise provided in NRS 645E.960, a person,
or any general partner, director, officer, agent or employee of a person, who
violates any provision of this chapter, a regulation adopted pursuant to this
chapter or an order of the Commissioner is guilty of a misdemeanor.
(Added to NRS by 1999, 3759)
NRS 645E.955 Restitution.
1. A person who engages in an activity for
which a license as a mortgage banker is required pursuant to this chapter,
without regard to whether such a person is licensed pursuant to this chapter,
may be required by the Commissioner to pay restitution to any person who has
suffered an economic loss as a result of a violation of the provisions of this
chapter or any regulation adopted pursuant thereto.
2. Notwithstanding the provision of
paragraph (m) of subsection 1 of NRS
622A.120, payment of restitution pursuant to subsection 1 shall be done in
a manner consistent with the provisions of chapter
622A of NRS.
(Added to NRS by 2009, 747;
A 2011,
3636)
NRS 645E.960 Penalties for violations relating to escrow or trust accounts. A person, or any general partner, director,
officer, agent or employee of a person, who violates any provision of NRS 645E.420, 645E.430
or 645E.440 is guilty of:
1. A misdemeanor if the amount involved is
less than $650;
2. A gross misdemeanor if the amount
involved is $650 or more but less than $1,000; or
3. A category D felony if the amount
involved is $1,000 or more, and shall be punished as provided in NRS 193.130.
(Added to NRS by 1999, 3759; A 2011, 179)
